Sustainable Procurement: Supplier Evaluation Criteria, Covid-19 Impact, Stakeholder Relationship and Institutional Pressures

Sustainable Procurement
TABLE OF CONTENT

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
a) Designing list of supplier evaluation criteria and justifying these criteria for the
organization:................................................................................................................................3
b) The effects of Covid-19 pandemic over the Unilever's supplier selection along with the rise
of new technologies affect that selection.....................................................................................5
c) Ways in which stakeholders relationship and institutional pressures affects the supplier
selection along with its impact over the company corporate reputation.....................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Sustainable procurement is one of the most important thing for every business organization
because this is part of CSR that allow company to become sustainable in the process and meet all
requirement of stakeholder (Kaur and Singh, 2019). Principle of sustainable procurement are
criteria that compile with CSR of company, selection of suitable supplier falls under these
criteria as well. This study is based on Unilever, this company is one of the largest retail brand
that have their set of supplier that are ready to provide raw material in affordable price and with
timely delivery. This report will discuss supplier evaluation criteria for organization and will
examine effect of COVID-19 on suppliers of organization. At this report will discuss relationship
between stakeholder and institutional pressure effect supplier.
MAIN BODY
a) Designing list of supplier evaluation criteria and justifying these criteria for the organization:
Supplier evaluation is one of the most important element for every business
organization who perform production process, selecting supplier on the basis of criteria is
important for the business organization. Unilever have their set of supplier that fulfil every
requirement of the company and provide raw material on time, it is very clear that Unilever is
one of the largest retail company that demand supplies on regular basis (Alikhani, Torabi and
Altay, 2019). Supplier of Unilever have to meet certain criteria to become part of supply chain of
the company, these are:
Production capacity: Production capacity is key element in supplier evaluation process where
company examine capacity of supplier to provide raw material on time. It is very clear that every
company look for those supplier who fulfil the demand of production unit, Unilever have big
production unit which require timely delivery of raw material. Suppliers are key pillar of the
business; without them business might fail to survive the market. Supplier need to wide range of
raw material that allow company to stick with them, changing supplier according to demand of
production might impact company’s smooth performance (Forkmann and et.al., 2016).
Examining production capacity of supplier is important for the company because lack of capacity
might impact timely delivery of product, Unilever consider this point to avoid any kind of delay
in their supply of product.

Quality: Quality is one of the most important element in supplier evaluation process, supplier
provide raw material in bulk which means standard of these material might be affected. When
company adopt raw material in bulk then there is high chance where will encounter with low
quality of raw material, supplier who demand high price provide high quality of raw material.
Unilever ensure their product fulfil demand of customer and meet all standard of quality, it is
very clear that if raw material is bad then final product will be worse. Unilever demand supplier
to have licence of providing raw material, this company do not hire those suppliers who are not
verified. This element is very important for Unilever as this allow company to ensure their
products meet demand of customer, Unilever focus on this point because they have brand image
and reputation which may be impacted due to low quality of product supplied by the company.
Performance: Performance of supplier matters a lot for the company, performance here means
supplier have ability to manage different function of the company. Every supplier has their own
perform criteria that allow them to meet requirement of the company, there are many cases
where company review their experience while working with supplier. Due to lack of
commitment, company may boycott supplier in their next deal, performance does affect selection
of supplier. Unilever review performance of their supplier from previous production process for
example; a set of supplier fail to provide raw material on time then company will remove those
suppliers from list and look for new set of supplier to perform better in the production process
(Taherdoost and Brard, 2019). This element is important for Unilever because performance of
supplier define their commitment which build future relationship, company and supplier have
their own relation.
Risk: Risk need to be consider by both supplier as well as company, risk is related to supply of
raw material for example; overall delay in delivery might impact production process, there are
many cases where supplier fail to fulfil their commitment and do not have good response to the
company. Production process of every company depend on supplier but there is risk associated
with supplier, Unilever deal in wide range of product, which means there is high risk available
when it comes to supply of valuable raw material. Company have to trust their supplier and need
relay on them for better performance, sometimes risk is associated with supply of harmful or
hazardous raw material.
Price: Price of raw material is important when it comes to selecting a supplier, company look for
those supplier who is ready to provide raw material in affordable price range. It is very clear that